Konica Minolta Group Consolidated Financial Results 1Q/March 2010 [April June 2009]

Transcription

1 Konica Minolta Group Consolidated Financial Results 1Q/March 2010 [April June 2009] August 6, 2009 Yasuo Matsumoto Senior Executive Officer Konica Minolta Holdings, Inc. 0

2 Cautionary Statement: The forecasts mentioned in this material are the results of estimations based on currently available information, and accordingly, contain risks and uncertainties. The actual results of business performance may sometimes differ from those forecasts due to various factors. Remarks: Yen amounts are rounded to the nearest million. 1

3 1Q/March 2010 financial results [Ref.] 1Q 1Q 4Q YoY Mar/2010 Mar/2009 Mar/2009 QoQ Net sales Gross income Gross income ratio 42.1% 47.0% 40.1% Operating income Operating income ratio -0.3% 9.6% -3.5% Ordinary income Net income before taxes Net income Net income ratio 0.2% 6.9% -6.0% EPS [Yen] CAPEX Depreciation R&D expenses FCF FOREX [Yen] USD Euro

4 1Q/March 2010 financial results - Comments YoY: 1Q/March 2010 vs. 1Q/March 2009 Net sales Actual change: billion yen or -18%, Forex impact: billion yen Operating profit (loss) Actual change: billion yen or -69%, Forex impact: -8.2 billion yen QoQ: 1Q/March 2010 vs. 4Q/March 2009 Net sales decreased by 11.8 billion yen Optics sales increased, but sales of all other remaining businesses, including Business Technologies, decreased. Gross profit ratio improved by 2 percentage points Owing to increased sales in Optics although Business Technologies profit decreased. SGA decreased by 7.5 billion yen (excluding forex: -9.7 billion yen) Cost reduction efforts were successful. As a result Operating profit improved by 6.5 billion yen. Ordinary income, income before income taxes, and net income turned profitable. 3

5 1Q/March 2010 consolidated results Segment Net sales [Ref.] 1Q 1Q 4Q YoY QoQ Mar/2010 Mar/2009 Mar/2009 Business Technologies Optics Medical & Graphic Other businesses HD and eliminations Group total Operating income [Ref.] 1Q 1Q 4Q YoY QoQ Mar/2010 Mar/2009 Mar/2009 Business Technologies Operating income ratio 0.2% 10.3% 3.5% Optics Operating income ratio 4.9% 17.3% -25.6% Medical & Graphic Operating income ratio 3.5% 4.5% -3.5% Other businesses HD and eliminations Group total Operating income ratio -0.3% 9.6% -3.5% Other businesses: Sensing and Industrial Inkjet businesses 4

6 1Q/March 2010 consolidated results Comments Business Technologies Unit sales of MFPs for both offices and production printing continued to lag, reflecting weaker market conditions stemming from corporations scaling-back of capital investments and credit contractions. Optics Since the 3Q / Mar2009, sales of our products partially recovered after falling in the phase of a rapid production adjustment by makers of digital electric appliances. But harder cost competition is anticipated. Medical & Graphic Sales of digital hardware for clinics in overseas were strong. 5

7 Sales trends in Business Technologies Color MFP Color tandem LBP Production printing Unit sales Unit sales Net sales YoY: -18%, QoQ: -23% YoY: +126%, QoQ: -5% YoY: -14% (-4%), QoQ: +2% (%) = Excluding FOREX effect MFP non-hardware - Net sales (Color + B/W) YoY: 0% (+9%), QoQ: +6% (%) = Excluding FOREX effect [Index] [billions of yen] [Index] Q 2Q 3Q 4Q Mar09 Mar10 * Base index : 1Q Mar09 = 1Q 2Q 3Q 4Q Mar09 Mar10 1Q 2Q 3Q 4Q Mar09 Mar10 1Q 2Q 3Q 4Q Mar09 Mar10 *Sum of five major sales companies: Japan, US, UK, Germany, France Color MFP Sales of hardware for offices experienced sluggish growth in the weaker market conditions mainly in Europe and the US. Color LBP (tandem) Sales of A4-color tandem LBPs for offices were solid. Production printing Although sales of hardware for production printing decreased, sales of nonhardware remained solid. (Change YoY excluding forex: +41%) MFP non-hard Sales maintained an actual increase of 9%, excluding forex effect. 6

8 Sales trends in Optics TAC film Unit sales Optical pickup lenses Unit sales Glass HD substrates Unit sales Mobile phone components Unit sales YoY: -1%, QoQ: +89% YoY: -32%, QoQ: +116% YoY: -43%, QoQ: +299% YoY: -45%, QoQ: -4% Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Mar09 Mar10 Mar09 Mar10 Mar09 Mar10 Mar09 Mar10 *Base index : 1Q Mar09 = TAC film Production at panel makers recovered with solid TV sales, helped primarily by economic measures undertaken by the Chinese and Japanese governments. Production volumes returned to the same level of the 1Q / Mar2009, which was at record levels. Optical pickup lenses Although sales for conventional products were recovering, the demand for BD for PCs was still weak. Glass substrates for HD Demand gradually recovered late in the 1Q / Mar2010. Components for camera equipped mobile phones The delivery volume continued to lag due to delay in recovery of volumes for end users. 7

9 Operating profit analysis Business Technologie Optics Other Total [Factors] Forex impact Depreciation of goodwill related to newly consolidated subsidiaries Prince change Sales volume change, and other, net Cost down SG&A change, net [Operating income] Change, YoY Q/Mar10 vs. 1Q/Mar09 Business Technologie Optics Other Total [Factors] Forex impact Prince change Sales volume change, and other, net Cost down SG&A change, net [Operating income] Change, QoQ Ref: 1Q/Mar09 vs. 4Q/ Mar09 *Impact of exchange rate fluctuation if given 1 yen change (full-year base): USD 50 million yen, Euro 700 million yen 8

10 Structural reform programs - Update Reducing fixed production costs Optimizing the domestic and overseas production systems and personnel of the Optics Business Personnel optimization was completed in the 4Q / Mar2009. The effect of personnel downsizing for the 1Q / Mar2010 was approx. 2 billion yen YoY. Reducing SGA expenses Streamlining overseas sales organizations for Business Technologies The implementation of programs progress as planned in the 1Q / Mar2010. The effect of labor cost reductions was approx. 2 billion yen YoY on an exchange impact excluded basis. The total cost reduction of major fixed costs including R&D costs and depreciation costs amounted to approx billion yen YoY, excluding forex effect. 9

11 Recognitions based on 1Q Business Technologies The downturn in MFP market conditions was initially sharper than had been expected, given continued tighter credit control for new leases and a scaling back of capital investment by corporate customers. Group Although the results of our fixed cost cutting programs surpassed the initial target, their effect on profit was offset by tougher price competition and sluggish sales growth. In Business Technologies, we will make every possible effort to maintain sales volume. For the Group-wide action, we will rapidly improve profit, and create a solid structure that can constantly generate profit and withstand a severe business environment. 10

12 New series of office color MFPs bizhub C652/C552 FY/Mar08 FY/Mar09 FY/Mar10 bizhub C650 bizhub C652 Power consumption saving by adopting IH fixing New auto-refining development system Short warm-up time and low-temperature fixing Comparison of Energy-Saving Performance with Previous Models bizhub C451 bizhub C353 bizhub C253 bizhub C552 New series bizhub C203 bizhub C200 Figures were calculated by converting the Typical Electricity Consumption (TEC) value, obtained by the measurement method as stipulated by the International Energy Star Program over a 52-week (one year) period. 11

13 Forecasts 1H and 2H/March 2010 Announced May 14, 2009 FORCAST FY/Mar10 1H 2H FY Net sales Operating income OP ratio 4.0% 6.1% 5.1% Ordinary income Net income before taxes Net income Net income ratio 0.9% 2.8% 1.9% CAPEX 50.0 Depreciation 70.0 R&D expenses 75.0 FCF 30.0 Exchange rates: 1 USD 95 yen, 1 Euro 125 yen 12

14 Forecasts 1H and 2H/March Segment Announced May 14, 2009 Net sales FORECAST FY/Mar10 1H 2H FY Business Technologies Optics Medical & Graphic Other businesses HD and eliminations Group total Operating income FORECAST FY/Mar10 1H 2H FY Business Technologies Operating income ratio 7.1% 6.8% 6.9% Optics Operating income ratio 3.8% 16.1% 11.0% Medical & Graphic Operating income ratio 1.0% 2.6% 1.8% Other businesses HD and eliminations Group total Operating income ratio 4.0% 6.1% 5.1% Other businesses: Sensing and Industrial Inkjet businesses 13

15 Supplementary Information 14

16 SGA, non-operating and extraordinary income/loss SGA 1Q/Mar10 1Q/Mar09 YoY Selling expenses - variable R&D expenses Labor costs Other SGA total* * Forex impact: -6.0 billion yen (Actual: -9.2 billion yen) Non-operating income/ loss: Interest and dividend income/loss, net Foreign exchange gain, net Other Non-operating income/ loss, net Extraordinary income/ loss: Sales of noncurrent assets, net Sales of investment securities, and sales of subsidiaries and affiliates' stocks, net Gain on transfer of business Reversal of provision for loss on business liquidation (Photo Imaging) Business structure improvement expenses Loss on revision of retirement benefit plan Other Extraordinary income/ loss, net

17 B/S Assets: Jun 2009 Mar 2009 Change Cash and short-term investment securities Notes and A/R-trade Inventories Other Total current assets Tangible assets Intangible assets Investments and other assets Total noncurrent assets Total assets Liabilities and Net Assets: Notes and A/P-trade Interest bearing debts Other liabilities Total liabilities Total shareholders' equity* * Shareholders' equiti + valuation and translation adjustments Other Total net assets Total liabilities and net assets [Yen] Jun 2009 Mar 2009 YoY US$ Euro

18 B/S Main indicators Equity ratio Interest-bearing debts Inventories and inventory turnover [%] [Times] [Days] 500 Shareholders'equity Equity ratio 300 D/E ratio Debts Inventories Turnover Mar 2009 Jun Mar 2009 Jun Mar 2009 Jun Equity ratio = Equity / Total assets Equity = Shareholder s equity + Total revaluation and translation adjustments D/E ratio = Interest-bearing debts at year-end / Shareholders equity at year-end Inventory turnover (days) = Inventories at year-end / Average sales per day 17

19 Cash flows 1Q/Mar10 1Q/Mar09 YoY Income before income taxes and minority interests Depreciation and amortization Income taxes paid Change in working capital I. Net cash provided by operating activities II. Net cash provided by investing activities I.+ II. Free cash flow Change in debts and bonds Cash dividends paid Other III. Net cash provided by financing activities